Credit Repair is an ongoing process, similar to the growth of another system. A system that works perfectly will need periodic monitoring and regular reviews to make sure that the aims of the system are achieved. The same is true for repairing one’s credit history, including understanding the various areas of interest that may be reported, identifying the numerous mistakes that can be created and learning how to fix credit score errors. Among the best ways to improve your credit score is through Credit Repair.
There are several areas that are generally confused throughout the credit repair process, the first of which is inaccurate or incomplete information. This can lead to a number of problems, such as the inability to become approved for home, automobile and business loans; being declined for employment; having bad credit report ratings; not qualifying for insurance; not having the ability to get certain professional licenses; and a multitude of other problems. By way of instance, missing data from a credit report can lower an individual’s credit score by up to 200 points. The most common cause of this problem is the failure to report accurate information.
When there are no national laws to protect consumers from inaccurate or incomplete information, the federal trade commission has taken steps to ensure that all consumers have access to accurate and fair reporting. The federal trade commission enacts many rules and guidelines to help Americans understand and avoid common mistakes and the negative consequences of these mistakes. By way of example, the three largest credit repair agencies in america must notify consumers of the differences between debt settlement and bankruptcy as well as the options available to them. The commission also requires credit bureaus to provide consumers with reasonable notices regarding changes in credit scores, any negative action which might be taken against them and other important information. Among the biggest issues that consumers face is the failure to properly understand the Fair Credit Reporting Act and its own rights.
Under FCRA, creditors are prohibited from making false statements about a consumer’s credit report. But, it doesn’t matter if these statements are true or not. As an example, it’s perfectly acceptable for a creditor to report inaccurate negative information on a consumer’s credit report if that creditor reports that information to all of the credit reporting bureaus. So, what if a consumer decides to question that negative information? Is it officially valid?
This is a tricky question. In theory, it would seem that a creditor has every right to include inaccurate negative things on a consumer’s credit report. But that would mean that the creditor is practicing false advertisements. Most credit repair companies dispute negative items on a consumer’s report. If the credit reporting agencies take the dispute seriously, the creditor will be asked to remove inaccurate negative items. But that will hardly ever occur.
Many credit repair services will simply instruct their clients not to take action to correct the problem. Why would they do that? If a creditor refuses to take action to correct inaccurate information, the credit bureau is under no obligation to remove erroneous information. The credit bureau can decide to investigate the dispute and take steps to investigate prior to making a determination. Then it could issue a letter to the creditor telling them that the information is inaccurate and need to be updated.
This scenario plays out over daily. A consumer decides to purchase a car and does a little bit of research to find out what the cost will be. After speaking with a trader, he decides to purchase the car. A couple of months pass by and he calls the dealer and says the cost he is offered is much less than what he had been told. He asks for a refund and is told he cannot get a refund because the credit report comprises an error.
The next step would be to allow him to send a letter to the credit reporting agency, disputing the errors on his credit report. If he’d done this before employing the credit repair company, he would have been able to generate a formal dispute. If he hadn’t had the help of the credit repair company, he may have had to attempt to make the dispute himself. By utilizing the services of a credit repair company, you’re given the advantage of someone else being able to help you in this part of credit repair.